RBC Capital reduced its price target for Lowe’s by $32 while maintaining a Sector Perform rating amid downside risks to 2026 forecasts.
RBC Capital lowered its price target for Lowe’s Companies (LOW) to $232 from $264, citing potential downside risks to the company’s 2026 guidance. The new target implies a nearly 7% upside from current levels, with the firm retaining a Sector Perform rating on the stock.
Lowe’s Q1 earnings per share surpassed expectations by about 2%, though comparable sales slightly missed forecasts. The company reaffirmed its FY 2026 outlook, projecting flat to 2% comparable sales growth and adjusted EPS between $12.25 and $12.75. RBC noted that while much of the guidance risk is already priced in, catalysts for upward revisions remain limited.
The home improvement retailer serves approximately 20 million customers weekly in the U.S. and maintains a 2.21% annual dividend yield.